Professional Documents
Culture Documents
Consider
In the view of
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OF THE REPUBLIC OF INDONESIA
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BE IT HEREBY RESOLVED:
Article I
Several provisions of the Law Number 8 Year 1983 on the Value Added Tax of
Goods and Services and Tax of Luxury Goods Sale (State Gazette of the
Republic of Indonesia Year 1983 Number 51, Supplement of State Gazette of
the Republic of Indonesia Number 3264) of which had been several times
amended with Law:
a. Number 11 Year 1994 (State Gazette of the Republic of Indonesia Year
1994 Number 61, Supplement of State Gazette of the Republic of
Indonesia Number 3586); and
b. Number 18 Year 2000 (State Gazette of the Republic of Indonesia Year
2000 Number 128, Supplement of State Gazette of the Republic of
Indonesia Number 3986).
were amended as follow:
1. Provision of Article 1 was changed, consequently it is read as follow:
Article 1
The following definition shall be applied in this Law:
1.
2.
3.
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4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
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17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
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28.
29.
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(1)
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Article 5
(1) Value Added Tax or Value Added Tax and Luxury Goods Selling Tax on
the returned Taxable Goods could be deducted from the payable Value
Added Tax or Value Added Tax and Luxury Goods Selling Tax within Tax
Period at which the Taxable Goods in question is returned.
(2) Value Added Tax of delivery of the cancelled Taxable Services, either
overall or partial, could be deducted from the payable Value Added Tax
within the Tax Period at which such cancellation is occurred.
(3) Provisions regarding on the deduction procedures of the Value Added Tax
and Luxury Goods Selling Tax as set forth in section (1) above and the
deduction of the Value Added Tax as set forth in section (2) shall be set
with Regulation of the Finance Minister.
8. Provision of Article 7 section (2) and section (3) are changed, consequently
it is read as follow:
Article 7
(1) The tariff of Value Added Tax shall be 10 % (ten percent).
(2) Tariff of Value Added Tax as much as 0 % (zero percent) shall be applied
to:
a. export of the Tangible Taxable Goods;
b. export of the Intangible Taxable Goods; and
c. export of the Taxable Services.
(3) Tax tariff as set forth in section (1) above could be changed at least 5%
(five percent) and no more than 15% (fifteen percent) of which the change
shall be set with Regulation of the Finance Minister.
9. Provision of Article 8 is changed, consequently it is read as follow:
Article 8
(1) The tariff of Luxury Goods Selling Tax shall be stipulated at least 10%
(ten percent) and no more than 200% (two hundred percent).
(2) Export of the Taxable Goods of which is categorized as Luxury Goods
shall be subject to 10% (ten percent) tax.
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(6b)
(3)
(4)
(4a)
Omitted.
Input Tax within a Tax Period shall be credited with Output Tax within
the same Tax Period.
For the Taxable Entrepreneurs who have not produced so that they
have not performed the delivery of tax payable, the Input Tax on the
acquisition and/ or import of capital goods could be credited.
The credited Input Tax should use the Tax Invoice of which meet the
requirements as set forth in Article 13 section (5) and section (9).
In the event that within a Tax Period, Output Tax is more than Input
Tax, the difference shall be Value Added Tax of which should be
deposited by the Taxable Entrepreneur.
In the event that within a Tax Period, the Input Tax of which could be
credited is more than the Output Tax, the difference is tax advantages
that compensated to the next Tax Period.
On the excess of the Input Tax as set forth in section (4) above, it could
be proposed for the return in the end of accounting year.
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(4b)
(4c)
(4d)
(4e)
(4f)
(5)
(6)
(6a)
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(9)
(10)
(11)
(12)
(13)
(14)
Input Tax that can be credited, but it has not been credited with the
Output Tax in the same Tax Period, it can be credited in the next Tax
Period for no more than 3 (three) months after the end of the
concerned Tax Period as long as it has not been borne as the cost and
has not examined.
Omitted.
Omitted.
Omitted.
Provision regarding on the calculation and the return procedures of
Input Tax advantages as set forth in section (4a), section (4b), and
section (4c) shall be set with or based on the Regulation of Finance
Minister.
In the event that the forward of Taxable Goods is occurred in the
framework of merger, consolidation, expansion, disunite, and business
acquisition, the Input Tax of the Taxable Goods of which is forwarded
by the Taxable Entrepreneur who forwards, could be credited by the
Taxable Entrepreneur who receives the forward, as long as the Tax
Invoice is received after the forward is occurred and such Input Tax
have not been borne as the cost or capitalized.
12. Provision of Article 11 section (1) and explanation of section (2) are
amended, consequently it is read as follow:
Article 11
(1) Tax payable could be occurred at:
a. delivery of the Taxable Goods;
b. import of the Taxable Goods;
c. delivery of the Taxable Services;
d. utilization of the Intangible Taxable Goods from the outside of
Customs Area;
e. utilization of the Taxable Service from the outside of Customs Area;
f. export of the Tangible Taxable Tax;
g. export of the Intangible Taxable Tax; or
h. export of the Taxable Service.
(2) In the event that the payment is received before the delivery of Taxable
Goods or the delivery of Taxable Service or in the event that the payment
is made before the commencement of utilization of Taxable Goods or
Taxable Service from the outside of Customs Area, the time of payable
tax shall be at the payment.
(3) Omitted.
(4) Directorate General of Taxation could determine other time as the time of
payable tax in the event that the payable tax is difficult to be determined
or there is the change on provision that can lead to injustice.
(5) Omitted.
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13. Provision of Article 12 section (1), section (2), and section (4) are changed,
consequently it is read as follow:
Article 12
(1) Taxable Entrepreneur who performs delivery as set forth in Article 4
section (1) point a, point c, point f, point g, and/ or point h of which is
payable tax at the residence or the domicile or places at which the
business activity is made or places other than residence or domicile and/
or places at which the business activity is made, shall be set with the
Regulation of the Directorate General of Taxation.
(2) Upon written notification from the Taxable Entrepreneur, the Directorate
General of Taxation could establish 1 (one) or more place of payable tax.
(3) In case for import, payable tax shall be occurred at which the Taxable
Goods are inserted and collected through the Directorate General of
Customs.
(4) Individual or entity, who utilizes the Taxable Goods or Taxable Services
from outside of the Customs Area in the inside of the Customs Area as
set forth in Article 4 section (1) point d, and point e, shall be payable at
the residence or domicile and/ or place of business activity.
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(2a)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
15. Between Article 15 and Article 16 is inserted 1 (one) Article, namely Article
15A, consequently it is read as follow:
Article 15A
(1) The payment of Value Added Tax by the Taxable Entrepreneur, as set
forth in Article 9 section (3), should be performed at no more than the
end of next month after end of Tax Period and before the Notification
Letter of Tax Period is submitted.
(2) Notification Letter of Tax Period shall be submitted at no more than the
end of next month after Tax Period ended.
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a. for the activity in certain area or certain places within the Customs
Area;
b. for the delivery of certain Taxable Goods or the delivery of certain
Taxable Services;
c. import of certain Taxable Goods;
d. for utilization of certain Intangible Taxable Goods from outside of
the Customs Area in the inside of Customs Area; and
e. for utilization of certain Taxable Services from outside of the
Customs Area in the inside of Customs Area.
shall be set with the Government Regulation.
(2) Input Tax, which is paid for the acquisition of the Taxable Goods and/ or
the Taxable Services of which on its delivery is not collected Value Added
Tax, could be credited.
(3) Input Tax, which is paid for the acquisition of the Taxable Goods and/ or
the Taxable Services of which its delivery is excused from the imposition
of Value Added Tax, could not be credited.
17. Provision Article 16D is changed, consequently it is read as follow:
Article 16D
The delivery of Taxable Goods in the form of assets that based on its
original purposes are not for sale by the Taxable Entrepreneur shall be
subject to Value Added Tax, unless for the delivery of assets whose Input
Tax could not be credited as set forth in Article 9 section (8) point b and
point c.
18. Between Article 16D and Article 17 is inserted 2 (two) Articles, namely
Article 16E and Article D, consequently it is read as follow:
Article 16D
(1) Value Added Tax and Luxury Goods Selling Tax, which have been paid
on the purchase of Taxable Goods of which takes out from the Customs
Area by individual foreign passport, could be reclaimed.
(2) Value Added Tax and Luxury Goods Selling Tax that could be reclaimed
as set forth in section (1) above should meet requirements as follow:
a. value of the Value Added Tax at least RP500.000, 00(five hundred
thousand rupiah) and could be adjusted with the Government
Regulation;
b. the purchase of Taxable Goods shall be made within 1 (one) month
before the departure to abroad; and
c. Tax Invoice meets the provision as set forth in Article 13 section
(5), except for column Primary Number of Taxpayer, address shall
be filled with Passport number, and full address of the country
issuing of the passport for the purchase to the individual foreign
passport holder who does not has Primary Number of Taxpayer.
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(3) The reclaim of Value Added Tax and Luxury Goods Selling Tax as set
forth in section (1) above shall be made when the individual foreign
passport holder leaves Indonesia and it is submitted to the Directorate
General of Taxation through office of the Directorate General of Taxation
in the airport of which is established by the Finance Minister.
(4) The document of which should be showed when reclaiming Value Added
Tax and Luxury Goods Selling Tax shall be as follow:
a. passport;
b. boarding pass for the departure of the individual as set forth in
section (1) above to the outside of Customs Area; and
c. Tax Invoice as set forth in section (2) point c.
(5) Provision regarding to the procedures of submission and the claim
settlement of Value Added Tax and Luxury Goods Selling Tax as set forth
in section (1) above, shall be set with or based on the Regulation of
Finance Minister.
Article 16F
Buyer of the Taxable Goods or the acceptor of Taxable Services shall be
jointly and severally liable on the tax payment, as long as could not show
the evidence that the tax has been paid.
Article II
This Law shall come into force since 1 April 2010.
For the public cognizance, it is ordered to promulgate this Law by placing
it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on 15th October 2009
PRESIDENT OF THE REPUBLIC OF INDONESIA
Signed,
DR. H. SUSILO BAMBANG YUDHOYONO
Promulgated in Jakarta
on 15th October 2010
MINISTER OF JUSTICE AND HUMAN
RIGHT OF THE REPUBLIC OF INDONESIA
Signed,
ANDI MATALATA
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THE PRESIDENT
OF THE REPUBLIC OF INDONESIA
THE EXPLANATION OF
LAW OF THE REPUBLIC OF INDONESIA
NUMBER 42 YEAR 2009
ON
THE THIRD AMANDMENT OF LAW NUMBER 8 YEAR 1983
ON THE VALUE ADDED TAX OF GOODS AND SERVICES AND TAX OF
LUXURY GOODS SALE
I.
GENERAL
Value Added Tax is the tax on the consumption of goods and services in the
Customs Area of which is imposed gradually in each canal of production and
distribution. The imposition of Value Added Tax is extremely affected by the
development of business transaction and the pattern of public consumption
of which is as the object of value Added Tax. The economic development of
which is very dynamic either in national, regional, and international level
continues to create the new business transaction patterns. For example, in
the field of service, lot of new services has arisen or as the modification from
the previous services whose imposition of the Value Added Tax has not been
set in the Law of Value Added Tax.
In order to respond such rapid changes, it is required to reform and to
improve Law on Value Added Tax. The reform of tax consumption system
has been made in 1983 through the issuance of Law Number 8 Year 1983 on
the Value Added Tax and Luxury Good Selling Tax. Measures of reformation
and improvement is implemented consistently in 1994 through the issuance
of Law Number 11 Year 1994 and lastly in 2000 through the issuance Law
Number 18 Year 2000.
Amendment of Law on Value Added Tax aims as follow:
1. To improve the legal certainty and justice for the imposition Value
Added Tax.
The growth of business transaction, particularly in the sector of
service, has created new type and pattern of which requires to be
further confirmed of its imposition in the Law on Value Added Tax.
2. To simplify the Value Added Tax system
The simplification of Value Added Tax system is implemented through
changing and improving provisions in the Law on Value Added Tax of
which make the Taxpayers difficult in the framework to implement
their right and obligation in taxation.
3. To reduce compliance cost.
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II.
ARTICLE BY ARTICLE
Article I
Number 1
Article 1
Self-explanatory
Number 2
Article 1A
Section (1)
Point a
Agreement means including sale, exchange,
purchase in installment, or other agreement that
results the delivery of goods entitlement.
Point b
Delivery of the Taxable Goods could be occurred
through hire-purchase agreement and/ or
leasing agreement.
Delivery of the Taxable Goods due to leasing
agreement means the delivery of Taxable Goods
of which is caused by leasing agreement with
option right.
In the event that delivery of the Taxable Goods
by the Taxable Entrepreneur is implemented in
the framework of leasing agreement with option
right, the Taxable Goods shall be deemed to be
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Point g
In the event that the delivery in consignment, the
Value Added Tax of which has been paid when
the Taxable Goods in question is delivered to be
paid, could be credited with the Output Tax at
the Tax Period at which the delivery of the
deposited Taxable Goods is occurred.
On the contrary, in the event that such deposited
Taxable Goods are not sold and it is decided to
be returned to the owner of the Taxable Goods,
such entrepreneur who receives the deposit
could use the provision on returns of the Taxable
Goods as set forth in Article 5A herein.
Section (2)
Point a
Broker shall be those who are mentioned in the
Book Trade Justice Act, which is broker who is
appointed by the President or by the officials of
which is declared by the President that they are
authorized for those matters. They run their
business through performing the work for a wage
or certain provision, on the mandate and on
behalf of the others that there is no employment
relationship.
Point b
Self-explanatory
Point c
In the event that an entrepreneur has more than
1 (one) business activity locations, either as head
office or as branch office, and such entrepreneur
has proposed in written to the Directorate
General of Taxation, the delivery of Taxable
Goods from one place to another (from head
office to branch office or otherwise or interbranch offices) shall be not considered as the
delivery of Taxable Goods, except for the delivery
of Taxable Goods inter-places of payable tax.
Point d
Business disunites, means the separation of
business as set forth in the Law of which
regulates the limited liability.
Point e
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Point f
In contrast with the entrepreneur who performs
activity as set forth in point a and/ or point c,
the entrepreneur who performs export of
Taxable Goods only the entrepreneur who has
been
established
to
be
the
Taxable
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2.
3.
4.
5.
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6.
Point h
The delivery of Taxable Service from the inside of
Customs Area to outside of the Customs Area by
the Taxable Entrepreneur who produces and
performs export of the Taxable Goods based on
demand or request with the material and based
on the direction of the buyer of the outside of
Customs Area, shall be included into the
definition of export of Taxable Service.
Section (2)
Self-explanatory
Number 5
Article 4A
Section (1)
Self-explanatory
Section (2)
Point a
Mining and drilling products of which are
directly taken from their sources include:
a. Crude oil;
b. Natural gas, excluded natural gas such
as LPG of which is directly ready for
consumption by the public;
c. geo thermal;
d. asbestos, slate, half gem stone, limestone,
pumice stone, gem stone, bentonite,
dolomite,
feldspar,
halite,
granite/
andesite, gypsum, calcite, kaolin, leusit,
magnesit, mica, marble, nitrate, opsidien,
ocher, sand and gravel, quartz sand,
perlite, phosphate, talk, fuller soil,
diatomaceous soil, clay, alum, tras,
yasorif, zeolite, basalt, and trakitt;
e. coal before it is processed into coal
briquette; and
f. iron ore, gold ore, lead ore, copper ore,
nickel ore, silver ore, and bauxite ore.
Point b
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h.
i.
j.
k.
rice;
rice grain;
corn;
sago;
soy;
salt, either iodized salt or non-iodized
salt;
meat, which is fresh meat that is without
being processed, but it have passed the
processes such as being slaughtered,
skinned, cut, chilled, frozen, packaged or
unpackaged, salted, limed, preserved by
other means and/ or boiled;
egg, which is egg that is not processed,
including cleaned, salted, and packaged
egg;
milk, which is dairy cow that has been
passed the processes such as being
heated or cooled, not sugar added
contained or other materials and/ or
packaged or unpackaged;
fruits, which are fresh fruits that are
picked and has been passed the
processes such as being washed, sorted,
peeled, sliced, graded, and/ or packaged
or unpackaged; and
vegetable, which is fresh vegetable that is
picked, washed, drained and/ or stored in
low temperature, including chopped
vegetables.
Point c
This provision shall be intended to avoid the
imposition of double taxed because it has
included Local Tax.
Point d
Self-explanatory
Section (3)
Point a
Medical Services include:
1. GP (General Practitioners) , specialist, and
dentist services;
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2. veterinarian services;
3. medical
expert
services,
such
as
acupuncturist, nutritionist, dental, and
physiotherapist;
4. midwife
and
TBA
(traditional
birth
attendance) services;
5. paramedic and nurse services;
6. hospital, maternity home, medical clinic,
medical laboratory, and sanatorium;
7. psychologist and psychiatrist services; and
8. alternative traditional medicine, including of
which is served by the paranormal.
Point b
Social services include:
1.
2.
3.
4.
5.
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5. underwriting services.
Point e
Insurance service means assurance services that
include loss insurance, life insurance, and
reinsurance of which is implemented by
insurance company to the policyholders,
excluding supporting service of insurance such
as insurance agent, assessor of loss insurance,
and insurance consultant.
Point f
Religious services include:
1.
2.
3.
4.
Point g
Education services include:
1. service on the provision of school education
such as the provision of general education,
vocational education, inclusive education,
service education, academic education, and
professional education; and
2. out of school education service.
Point h
Art and entertainment services include all types
of service that performed by the artist and
entertainer.
Point i
Non-advertisement broadcasting service includes
radio and television broadcasting of which are
performed by the government or private
institution of which is non-advertisement
program and of which is not supported by the
sponsor for commercial purposes.
Point j
Self-explanatory
Point k
Employment services include:
1. labor services;
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Point n
Parking services means service of which provides
parking space that is performed by the owner of
parking spaces and/ or the entrepreneur to be
provided for the user of parking service with
charge.
Point o
Public telephone service that uses coins mean
public telephone services using coins of which
are organized by the government owned or
private company.
Point p
Self-explanatory
Point q
Self-explanatory
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Number 6
Article 5
Section (1)
Upon the delivery of Taxable Goods of which are
categorized as luxury goods or imported Taxable Goods
of which are categorized as luxury goods, shall also be
subject to the Luxury Goods Selling Tax
in
consideration that:
a. the balance in the tax imposition on the low income
community and high income community is
required;
b. control on the consumption pattern of the Taxable
Goods of which are categorized as luxury goods is
required;
c. protection against small or traditional producers
are required;
d. securing the state revenue is required.
Luxury Taxable Goods mean:
1. goods of which are non-staple goods;
2. goods of which are consumed by certain group of
community;
3. goods of which are generally consumed by the high
income community; and/ or
4. goods of which are consumed to show the status.
The imposition of Luxury Goods Selling Tax towards
the Luxury Taxable Goods is regardless person or
entity who imports such Taxable Goods as well
regardless is it the import performed continuously or
just only one time.
In addition, the imposition of Luxury Goods Selling Tax
towards the Luxury Taxable Goods is regardless does a
part of the Luxury Taxable Goods has been imposed or
has not been imposed the Luxury Goods Selling Tax on
the previous transaction.
In this Article, matters of which are included into the
definition of produce are:
a. assembling, is combining the spare parts of a stuff
to be a intermediate stuff or finished stuff, such as
assembly for vehicle, electronic stuff, and home
furnishings;
b. cooking, is processing stuff through heating, either
mixing with other materials or not;
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Section (2)
The Luxury Goods Selling Tax shall be the tax of which
is imposed to the Taxable Goods of which are
categorized as luxury goods in the inside of Customs
Area. Therefore, the Taxable Goods of which are
categorized as luxury goods that are exported or
consumed in the outside of Customs Area shall be
subject to Luxury Goods Selling Tax with the tariff as
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Section (2)
Tax imposition basis in the form of other values shall
be set with or based on the Regulation of Finance
Minister just only to assure sense of fairness in the
matters as follow:
a. Selling Price, Replacement Value, Import Value,
and Export Value are difficult to be determined;
and/ or
b. the delivery of the Taxable Goods of which are
required by the public.
Number 11
Article 9
Section (1)
Self-explanatory
Section (2)
The buyer of Taxable Goods, the acceptor of Taxable
Service, importer of Taxable Goods, party who utilizes
the Intangible Taxable Goods from outside of the
Customs Area, or the party who utilizes the Taxable
Services from outside of the Customs Area shall be
obliged to pay Value Added Tax and obtain tax
collection evidence. The Value Added Tax of which
should be paid, is the Input Tax for the buyer of
Taxable Goods, the acceptor of Taxable Service,
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Section (2b)
For the purpose of the credit of Input Tax, the Taxable
Entrepreneur shall utilize the Tax Invoice of which
meets the provision as set forth in Article 13 section
(5).
In addition, the Input Tax that has been credited
should also meet the formal correctness and material
requirement as set forth in Article 13 section (9).
Section (3)
Self-explanatory
Section (4)
The Input Tax of which is referred to in this section
shall be the Input Tax that could be credited.
Within a Tax Period there is an Input Tax of which is
bigger than Output Tax. The excess of such Input Tax
could be reclaimed at the Tax Period in question, but it
is compensated to the next Tax Period.
Example:
Tax Period May 2010
Output Tax
Rp2.000.000, 00
Rp4.000.000, 00
Tax overpayment
Rp2.500.000, 00
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Rp3.000.000, 00
Rp2.000.000, 00
------------------(-)
Tax underpayment
Tax Overpayment
Period May 2010
from
Rp1.000.000, 00
Rp2.500.000, 00
Tax
------------------(-)
Tax Overpayment of the Tax
Period June 2010
=
Rp1.500.000, 00
Section (4a)
The excess of the Input Tax within a Tax Period of
which is in accordance with the provision of section (4)
is compensated to the next Tax Period. However, in the
event that such excess of Input Tax is occurred in the
end of accounting year, such excess of Input Tax could
be proposed for restitution.
Tax Period at which the Taxable Entrepreneur
performs dissolution of the business shall be included
into the definition of the end of accounting year.
Section (4b)
Self-explanatory
Section (4c)
Self-explanatory
Section (4d)
Self-explanatory
Section (4e)
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tax
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is
non-payable
tax
is
non-payable
tax
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Output Tax
= Rp15.000.000, 00
Input Tax
= Rp8.000.000, 00
---------------------- (-)
Underpayment
in
accordance with the
examination result
= Rp7.000.000, 00
Underpayment
in
accordance with the
Notification Letter
= Rp2.000.000, 00
----------------------- (-)
Underpayment
= Rp5.000.000, 00
Point j
Self-explanatory
Section (9)
This provision is possibly that the Taxable
Entrepreneur can credit the Input Tax and the Output
Tax within the different Tax Period, which is caused,
such as Tax Invoice is received lately. The credit of
Input Tax from the different Tax Period shall only be
allowed at the next Tax Period at no more than 3
(three) months after the end of the concerned Tax
Period. In the event that such period has exceeded, the
credit of Input Tax can be performed through the
correction of the Notification Letter of the Period of
Value Added Tax in question. Both methods of credit
shall only be applied in the event that the Input Tax in
question have not been borne as the cost or not be
added (capitalized) to the acquisition price of the
Taxable Goods or Taxable Services in question and
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OF THE REPUBLIC OF INDONESIA
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OF THE REPUBLIC OF INDONESIA
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Point d
In the event that the individual or the entity
utilizes Intangible Taxable Goods from outside of
the Customs Area in the inside of Customs Area
or utilizes the Taxable Service from outside of the
Customs Area in the inside of Customs Area, the
payable tax shall be occurred since such
individual or entity starts to utilize the Intangible
Taxable Goods or the Taxable Services in
question in the inside of the Customs Area. In
connection with the fact that person who delivers
the Taxable Goods or Taxable Services in the
outside of the Customs Area cannot be
established as the Taxable Entrepreneur.
Therefore, time of payable tax shall not be
connected with time of delivery, but it is
connected with the time of utilization.
Point e
Self-explanatory
Point f
Self-explanatory
Point h
Self-explanatory
Section (2)
In the event that the payment is received before the
delivery of Taxable Goods as set forth in Article 4
section (1) point a, before the delivery of Taxable
Services as set forth in Article 4 section (1) point c,
before the commencement of utilization of the
Intangible Taxable Goods from outside of the Customs
Area as set forth in Article 4 section (1) point d, or
before the commencement of utilization of the Taxable
Service from outside of the Customs Area as set forth
in Article 4 section (1) point e, the payable tax shall be
at the payment.
Section (3)
Self-explanatory
Section (4)
Self-explanatory
Section (5)
Self-explanatory
THE PRESIDENT
OF THE REPUBLIC OF INDONESIA
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Number 13
Article 12
Section (1)
The individual Taxable Entrepreneur shall be payable
tax in his/ her residence and/ or business domicile,
while entity Taxable Entrepreneur shall be payable tax
in its domicile and its business activity.
In the event that the Taxable Entrepreneur has one or
more business domicile beyond its residence or
business domicile, each place shall be the place of
payable tax and the Taxable Entrepreneur shall be
obliged to report his/ her business activity to be
established as the Taxable Entrepreneur.
In the event that the Taxable Entrepreneur has more
than one places of payable tax within working area of 1
(one) the Directorate General of Taxation office for all
places of payable tax, the Taxable Entrepreneur can
select one of the business places as the place of
payable tax for its business places, unless if the
Taxable Entrepreneur requires more than 1 (one)
places of payable tax, such Taxable Entrepreneur shall
be obliged to notify the Directorate General Of
Taxation.
In certain condition, the Directorate General of
Taxation could establish place other than the residence
or domicile and business place as the place of payable
tax.
Example 1:
Individual A, whose domicile is in Bogor, has business
in Cibinong. In the event that there is not delivery of
the Taxable Goods or Taxable Service in the residence,
he/ she shall only be obliged to report his/ her
business to be established as the Taxable
Entrepreneur in Cibinong Tax Office (Kantor Palayanan
Pajak Pratama Cibinong) because the place of payable
tax for Individual A is in Cibinong. On the contrary, in
the event that the delivery of Taxable Goods or Taxable
Service of the Individual A is only made in his/ her
residence, the Individual A shall be obliged to register
in the Bogor Tax Office (Kantor Pelayanan Pajak
Pratama Bogor). However, in the event both in his/ her
residence and his/ her business place the Individual A
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OF THE REPUBLIC OF INDONESIA
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OF THE REPUBLIC OF INDONESIA
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OF THE REPUBLIC OF INDONESIA
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Section (2a)
In order to ease the administrative burden, the Taxable
Entrepreneur shall be allowed to make the combined
Tax Invoice at no longer than the end of month of the
delivery of Taxable Goods or the delivery of Taxable
Service, although within the month of delivery, the
payment has been occurred either overall or partially.
Example 1:
In the event that the Taxable Entrepreneur A performs
the delivery of the Taxable Goods to the entrepreneur B
at 1, 5, 10, 11, 12, 20, 25, 28, and 31 July 2010, but
until the 31st July there is not payment, the Taxable
Entrepreneur A shall be allowed to make 1 (one)
combined Tax Invoice of which includes all delivery
that are performed at July, which is no longer than 31
July 2010.
Example 2:
The Taxable Entrepreneur A performs the delivery of
the Taxable Goods to entrepreneur B at 2, 7, 9, 10, 12,
20, 26, 28, 29, 30 September 2010. At 28 September
2010, there is a payment for the delivery of 2
September 2010. In the event that the Taxable
Entrepreneur A issues the combined Tax Invoice, the
combined Tax Invoice shall be made at 30 September
2010 of which includes all delivery that are occurred in
September 2010.
Example 3:
The Taxable Entrepreneur A performs the delivery of
the Taxable Goods to entrepreneur B at 2, 7, 9, 10, 12,
20, 26, 28, 29, 30 September 2010. At 28 September
2010, there is a payment for the delivery of 2
September 2010 and the deposit payment for the
delivery of which will be performed in October 2010. In
the event that the Taxable Entrepreneur A issues the
combined Tax Invoice, the combined Tax Invoice shall
be made at 30 September 2010 of which includes all
delivery and deposit payment of which is performed in
September.
Section (3)
Self-explanatory
Section (4)
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OF THE REPUBLIC OF INDONESIA
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Self-explanatory
Section (5)
Tax Invoice shall be the evidence of tax collection of
which can be used as an instrument to credit the Input
Tax. Tax Invoice should be filled completely, clearly,
and correctly as well signed by the party who
appointed by the Taxable Entrepreneur to sign it.
However, the description regarding on the Luxury
Goods Selling Tax is only filled in the event that upon
the delivery of the Taxable Goods is payable the Luxury
Goods Selling Tax. Tax Invoice of which is not filled in
accordance with the provision of this section, will
result the Value Added Tax of which is included on it,
cannot be credited as in accordance with the provision
Article 9 section (8) point f.
Section (6)
It is excluded from the provision as set forth in section
(5) above, the Directorate General of Taxation could
determine the document of which is commonly used in
the business whose capacity is equal to the Tax
Invoice.
This provision is required due to, such as:
a. sales invoice of which is applied by the
entrepreneur has been widely recognized by the
public, such as telephone bill invoice, and airline
ticket ;
b. evidence of tax collection shall be evidenced with
Tax Invoice, while the party who should make the
Tax Invoice, which is the party who deliver the
Taxable Goods or the Taxable Service, is in th
outside of Customs Area, for example in the event
that the utilization of the Taxable Service from
outside of the Customs Area, Forms of Tax
Payment could be established as Tax Invoice; and
c. there is certain document that is used in import
or export of the Intangible Taxable Goods.
Section (7)
Self-explanatory
Section (8)
The corrected Tax Invoice shall be the Tax Invoice
whose writing is incorrect or whose filling is incorrect.
The adjustment of Selling Price due to the decrease of
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OF THE REPUBLIC OF INDONESIA
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Section (2)
The Taxable Goods of which are paid within 1 (one)
month prior the departure the individual foreign
passport holder to the abroad shall be considered that
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OF THE REPUBLIC OF INDONESIA
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Section (4)
Self-explanatory
Section (5)
Self-explanatory
Article 16F
In accordance with the principle of tax, burden payment for
the Value Added Tax of Goods and Services and the Luxury
Goods Selling Tax shall be on the buyer or the customer of
the goods or the acceptor of services. Therefore, the buyer or
the customer of the goods ought to be jointly and severally
liable on the payment of payable tax if it turns out that such
payable tax cannot be invoiced to the seller or service
provider and the buyer or the acceptor of services or the
customer of the goods fail to show the evidence of tax
payment to the seller or the services provider.
ARTICLE II
Self-explanatory